A seller’s market exists when there is a low inventory of homes for sale and a lot of buyers are looking to purchase usually creating multiple offer situations and pushing up the sale price of the home (also known as a hot market).
A buyer's market exists when there is a high inventory of homes for sale and not a lot of buyers are competing for the same homes usually creating lower pricing.
What is a Short Sale?
A Jacksonville Florida short sale is the sale of real estate in which the proceeds from selling the property fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens’ full amounts. The lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency.
Short sale agreements do not necessarily release borrowers from their obligations to repay any shortfalls on the loans, unless specifically agreed to between the parties. Once the short sale is approved, no deficiencies are permitted after the short sale. A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. There have been 2.2 million short sales in the United States during the Subprime mortgage crisis.
In some ways, buying a short-sale property is just like a traditional purchase. However, there are a couple of ways in which the purchase agreement you and your agent draw up are different. The contract will specify that the terms are subject to the mortgage lender’s approval. In a normal transaction, the only party who would need to approve the sale is the seller. Some experts say that short sales are priced below market values, creating the opportunity for buyers to get a great deal or for first-time home buyers to get into a home when they otherwise might not be able to afford one.
You could wait up to a year to close on a short sale, so be prepared to wait.There is no more tax forgiveness on the gain as of December 31st 2013 style like on buying page.
What is a Foreclosure?
A Jacksonville Florida foreclosure is the process by which a homeowner’s rights to a property are forfeited because of failure to pay the mortgage. If the homeowner cannot pay off the outstanding debt or sell it by short sale, the property then goes to a foreclosure auction. If the property does not sell at auction, it becomes the property of the lending institution.
What is a HUD Home?
This is a home that has been taken over by the United States Department of Housing and Urban Development (HUD) as a result of a foreclosure on a FHA insured loan. HUD homes can be a very good deal if you are lucky enough for your offer to be selected from the bid. When someone with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. The house is then sold at market value as quickly as possible.
The Closing is the final step of the sales process and at the closing table is where the ownership of your property will transfer from you the seller to the new buyer.